was never approved. The CBL has been allocating essential expenditure to cover only the yearly publicsector salaries (LYD 23 billion) and subsidies (LYD 14.5 billion). All other ministerial expenditures are suspended until a legitimate government is formed.
Economic prospects depend on the political and security situations; the expected recovery in oil production could once again be derailed if they do not improve. The election of the House of Representatives (HoR) in June 2014, to replace the General National Congress (GNC) formed after the overthrow of the Qaddafi regime, has further deepened the country’s political divisions, with the various regional and tribal militias aligning themselves more closely with one or another parliament. With neither the militias nor the two governments having full coercive power, a security vacuum has emerged, undermining any form of economic activity and, in turn, highlighting the dire need for a broad-based process of political reconciliation.
The issue of spatial inclusion is at the heart of the volatile transition that Libya has experienced since the 2011 revolution. In fact, spatial exclusion, at various socio-economic levels, has undermined any form of national solidarity required for a move towards post-revolution democratic governance. The legacy of colonialism was the creation of an ethnically, tribally and socio-politically heterogeneous country, over which the Qaddafi regime had maintained control through force instead of a strategy of
inclusion. Post-2011 Libya has therefore witnessed the rise of geographical, tribal and ethnic tensions. A resolution to such disparities and a process of national dialogue would be key elements of a successful political and economic transition.